Whiteout is a town in the Polar District located east of Blizzardville and south of South Pole City. The city is a major tourist attraction due to Mount Whiteout, the mountain close to the city that is often used for skiing, and its close proximity to the major metropolitan city of South Pole City. In recent years, the expensive price of housing in South Pole City has also brought thousands of people to Whiteout due to the low cost of housing in the city, and hundreds of new homes have been built each year due to the large amounts of people moving to the city each year.

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Whiteout was first built in 1860 as a small mining town by miners who came to mine the rich precious minerals of Mount Whiteout, namely gold, which had been discovered near the mountain a few months earlier. However, the town became almost a ghost town after most of the gold had been mined by the late 1880s, with a population of no more than a few hundred. In the late 1980s, however, a group of penguins opened up a ski resort close to Mount Whiteout after discovering the mountain was ideal for skiing as well, and skiers soon flocked to the town, boosting the tourism.

Despite the existence of a ski resort in the city and more notability around Antarctica, the town remained small throughout, the years, with growth completely halting during the Colonial Antarctica War. Whiteout was occupied by Puffish soldiers during the Colonial Antarctica War and the ski resort used as barracks by the soldiers, meaning that it was closed throughout the war. After the end of the Colonial Antarctica War, however, people began moving to Whiteout again, mostly to escape the expensive housing costs in South Pole City, and the city has grown in the past few years.

Whiteout was originally accessed by a single road from Highway 10, leading for a few miles into the city center of Whiteout, but in the later years, the city grew in size, eventually bordering the highway itself. In the early 2000s, a second exit was built on Highway 10 to relieve traffic on the original road, which was getting increasingly crowded. Whiteout also has a small airport, Whiteout Regional Airport, which only flies to nearby cities, and a train line leading from South Pole City, which was built recently so Whiteouters could travel to South Pole City more easily.